At the latest Fixed Ops Roundtable, I had the chance to sit down with industry leaders Ted Ings, Sarah Vantine, Allie Peters, Ellen Rhoades, and Michael Weldon for a powerful panel focused on something dealerships only think they’re addressing consistently: inventory management and obsolescence.

We’re heading into the shortest work months of the year, and while November and December bring holidays, schedule compression, and stressed customers, they don’t bring fewer repairs. If anything, demand increases. This conversation unpacked what really matters at year-end, why obsolescence continues to quietly drain profit, and how dealers can position themselves for a strong start to 2026.

The End of the Year Isn’t the Time to Start Looking at Obsolescence

One of the first points raised was that too many dealers wait until after the physical inventory count to look at obsolescence.

Ellen, who is leading a young but highly motivated team across multiple rooftops, is using this season for hands-on training and rebuilding fundamentals:

• Bin location accuracy

• Return processes

• Winterization and seasonal stock

• Fast-moving parts needed for Q1

• Team understanding of how small mistakes compound over time

Her reminder was simple: one small process miss today becomes a long-term inventory problem.

When the System Is Broken, the Inventory Follows

Michael Weldon, who supports stores across the country, shared a consistent pattern: parts inventory is the dealership’s second-largest investment, yet often the least discussed.

Many stores are running with a majority of their inventory already obsolete. Not because managers aren’t working hard, but because systems are misaligned:

• Bin locations are inconsistent

• Parts are misplaced and reordered

• Stocking logic is outdated

• ASR and manufacturer programs aren’t aligned

• Phase-in/phase-out rules don’t match real demand

• Inventory categories and sources are not structured correctly

As Mike put it, you cannot support customers with parts you cannot locate or parts that should never have been stocked to begin with. It’s not simply an inventory issue—it’s a system setup issue, and it affects everything from cycle time to customer satisfaction.

When Supply Chains Shift, Strategy Must Shift Too

Allie shared her team’s recent experience navigating a manufacturer cyber incident that delayed parts availability. Instead of waiting for shortages to hit, her team increased stock on critical parts, revisited bank-out routines, and reinforced process basics.

Her perspective reinforced a critical theme from the panel: great parts management is proactive, not reactive. Even experienced teams need frequent refreshers on the fundamentals.

The Hidden Cost of Not Having the Part

During the panel, Kaylee introduced a new calculation PartsEdge built to reveal the actual financial impact of not having the right parts in stock. The results surprised many.

Missing as few as three parts per day can lead to:

• Significant lost parts gross

• Delayed repair orders and lost labor hours

• Annual losses that commonly reach $200,000 to $300,000

• Additional working capital tied up in non-productive inventory

Sarah connected this directly to the customer experience. During high-stress months like November and December, customers are far less willing to wait. If the part isn’t available, they will find another shop, and many will not return.

Training, Culture, and Consistency: The Real Antidote to Obsolescence

Both Ellen and Allie emphasized that inventory health isn’t achieved through occasional cleanup—it is built through daily culture and consistent habits.

This means:

• Daily bin checks

• Clear special-order follow-up

• Accurate part locations

• Strong communication with technicians

• Team understanding of why each step matters

Allie compared it to professional athletes who have been performing for decades. They still run the same drills every day because the basics are what sustain performance. When fundamentals are ignored, inventory problems surface quickly.

You Can’t Guess Your Way Into a Healthy Inventory

Across the entire conversation, one truth became clear: dealerships do not struggle because parts managers lack skill or effort. They struggle because parts managers are not given the structure, tools, and system support needed to succeed.

A modern parts department needs:

• Clean and accurate data

• A properly structured sourcing strategy

• Daily optimization

• Seasonal inventory alignment

• Clear, repeatable processes

• Leadership involvement and support

This is the work PartsEdge does every day—providing the behind-the-scenes structure and optimization that allows parts managers to lead confidently, reduce obsolescence, and run a more profitable department.

To learn how much incomplete inventory may be costing your dealership, explore our resources or reach out to discuss your numbers.